21.05.2024 13:10:31 - dpa-AFX: GNW-Adhoc: Carbon Streaming Announces Update on the Status of the Rimba Raya Verra Account and Concession License
TORONTO, May 21, 2024 (GLOBE NEWSWIRE) -- Carbon Streaming Corporation (Cboe CA:
NETZ) (OTCQB: OFSTF) (FSE: M2Q) ("Carbon Streaming" or the "Company") today
provided an update on the status of the Rimba Raya project's Verra account and
its Forest Utilization Business License (the "Concession License").
On May 17, 2024, Verra temporarily suspended InfiniteEARTH Limited and its
Indonesian subsidiary PT InfiniteEARTH Nusantara, the project proponent of the
Rimba Raya project (collectively "InfiniteEARTH"), registry account for the
Rimba Raya project. Verra has written to InfiniteEARTH, with whom the Company
had previously entered into the carbon credit streaming agreement covering the
Rimba Raya project (the "Rimba Raya Stream"), to seek clarification on several
matters, including the revocation of the Concession License by the Indonesian
Government's Ministry of Environment and Forestry (the "MOEF"), and the status
of InfiniteEARTH's role in the Rimba Raya project and its relationship with PT
Rimba Raya Conservation ("PT Rimba"), the local concession holder for the Rimba
Raya project. InfiniteEARTH was given seven days to respond, after which Verra
will determine whether any further action is required under its program rules
and requirements.
On May 16, 2024, the State Administrative Court of Jakarta issued an
interlocutory decision for the MOEF to suspend the implementation of the MOEF
decree in respect of the revocation of the Concession License. This suspension
will allow activities at the Rimba Raya project to resume until a final and
binding decision on the revocation of the Concession License.
As previously announced, a final decision from the State Administrative Court of
Jakarta is currently anticipated during June 2024 (which decision is subject to
potential appeal by the parties). If the parties appeal the decision, the
suspension would remain in place during the appeal process until there is a
final and binding decision that has permanent legal force, unless there is
another stipulation from the court that states otherwise. As a result, the
duration of the suspension is unknown at this time.
For the Company's most recently completed financial period, the three month
quarter ended March 31(st), 2024, the Company determined the fair value of the
Rimba Raya Stream to be nil due to the Concession License revocation. The
Company will re-evaluate the fair value of the Rimba Raya Stream in the event
there is a change in the facts and circumstances surrounding the Rimba Raya
project, the revocation of the Concession License and the Indonesian national
carbon emission regulations. The Company is continuing to evaluate all legal
avenues to protect its investment in the Rimba Raya project and to strictly
enforce its legal and contractual rights under the Rimba Raya Stream. In
addition, Carbon Streaming will also continue to work closely with InfiniteEARTH
on its active engagement with its local partners, the MOEF and the Indonesian
Government, to attempt to preserve the continuity of the Rimba Raya project.
For a comprehensive discussion regarding the risks, assumptions and
uncertainties that could further impact the Rimba Raya project and the Rimba
Raya Stream, including, without limitation, concerning the legal status of the
Concession License and the Company's Rimba Raya Stream, investors are urged to
review the section of the Company's management's discussion and analysis for the
three months ended March 31, 2024 dated as of May 15, 2024 entitled "Strategy
and Outlook - Indonesia Update", the section of the Company's Annual Information
Form dated as of March 27, 2024 entitled "Risk Factors" and the press releases
dated April 26, 2024 and May 15, 2024, copies of which are available on SEDAR+
at www.sedarplus.ca (http://www.sedarplus.ca).
About Carbon Streaming
Carbon Streaming (https://www.carbonstreaming.com/) aims to accelerate a net-
zero future. We pioneered the use of streaming transactions, a proven and
flexible funding model, to scale high-integrity carbon credit projects to
advance global climate action and additional United Nations Sustainable
Development Goals. This approach aligns our strategic interests with those of
project partners to create long-term relationships built on a shared commitment
to sustainability and accountability and positions us as a trusted source for
buyers seeking high-quality carbon credits.
The Company's focus is on projects that have a positive impact on the
environment, local communities, and biodiversity, in addition to their carbon
reduction or removal potential. The Company has carbon credit streams and
royalties related to over 20 projects around the world, including high-integrity
removal, reduction and avoidance projects from nature-based, agricultural,
engineered and community-based methodologies.
To receive corporate updates via e-mail, please subscribe here
(https://www.carbonstreaming.com/#sign-up).
ON BEHALF OF THE COMPANY:
Justin Cochrane, President & Chief Executive Officer
Tel: 647.846.7765
info@carbonstreaming.com (mailto:info@carbonstreaming.com)
www.carbonstreaming.com (http://www.carbonstreaming.com)
Investor Relations
investors@carbonstreaming.com (mailto:investors@carbonstreaming.com)
Media
media@carbonstreaming.com (mailto:media@carbonstreaming.com)
Cautionary Statement Regarding Forward-Looking Information
This news release contains certain forward-looking statements and forward-
looking information (collectively, "forward-looking information") within the
meaning of applicable securities laws. All statements, other than statements of
historical fact, that address activities, events or developments that the
Company believes, expects or anticipates will or may occur in the future, are
forward-looking information, including, without limitation: statements with
respect Verra's rules and procedures; statements with respect to InfiniteEARTH's
status as the project proponent of the Rimba Raya project; statements with
respect to the status of the Concession License held by PT Rimba and the
evaluation of legal avenues to protect the Company's investment in the Rimba
Raya project and to enforce its legal and contractual rights; statements with
respect to the duration of the suspension of the decree revoking the Concession
License; statements with respect to the timing of a final ruling from the State
Administrative Court of Jakarta.
When used in this news release, words such as "estimates", "expects", "plans",
"anticipates", "will", "believes", "intends", "should", "could", "may" and other
similar terminology are intended to identify such forward-looking statements.
This forward-looking information is based on the current expectations or beliefs
of the Company based on information currently available to the Company. Forward-
looking information is subject to a number of risks and uncertainties that may
cause the actual results of the Company to differ materially from those
discussed in the forward-looking information, and even if such actual results
are realized or substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on, the Company. They should not
be read as a guarantee of future performance or results, and will not
necessarily be an accurate indication of whether or not such results will be
achieved. Factors that could cause actual results or events to differ materially
from current expectations include, among other things: changes to the status of
registration of the Rimba Raya project under Verra; the outcome of the final
ruling with respect to the revocation of the Concession License held by PT
Rimba; general economic, market and business conditions and global financial
conditions, including fluctuations in interest rates, foreign exchange rates and
stock market volatility; volatility in prices of carbon credits and demand for
carbon credits; change in social or political views towards climate change,
carbon credits and ESG initiatives and subsequent changes in corporate or
government policies or regulations and associated changes in demand for carbon
credits; limited operating history for the Company's current strategy; risks
arising from competition and future acquisition activities; concentration risk;
inaccurate estimates of growth strategy; dependence upon key management; impact
of corporate restructurings; reputational risk; failure or timing delays for
projects to be registered, validated and ultimately developed and for emission
reductions or removals to be verified and carbon credits issued (and other risks
associated with carbon credits standards and registries); foreign operations and
political risks including actions by governmental authorities, including changes
in or to government regulation, taxation and carbon pricing initiatives;
uncertainties and ongoing market developments surrounding the validation and
verification requirements of the voluntary and/or compliance markets; due
diligence risks, including failure of third parties' reviews, reports and
projections to be accurate; dependence on project partners, operators and
owners, including failure by such counterparties to make payments or perform
their operational or other obligations to the Company in compliance with the
terms of contractual arrangements between the Company and such counterparties;
failure of projects to generate carbon credits, or natural disasters such as
flood or fire which could have a material adverse effect on the ability of any
project to generate carbon credits; volatility in the market price of the
Company's common shares or warrants; the effect that the issuance of additional
securities by the Company could have on the market price of the Company's common
shares or warrants; global health crises, such as pandemics and epidemics; and
the other risks disclosed under the heading "Risk Factors" and elsewhere in the
Company's Annual Information Form dated as of March 27, 2024 filed on SEDAR+ at
www.sedarplus.ca (http://www.sedarplus.ca).
Any forward-looking information speaks only as of the date of this news release.
Although the Company believes that the assumptions inherent in the forward-
looking information are reasonable, forward-looking information is not a
guarantee of future performance and accordingly undue reliance should not be put
on such statements due to the inherent uncertainty therein. Except as may be
required by applicable securities laws, the Company disclaims any intent or
obligation to update any forward-looking information, whether as a result of new
information, future events or results or otherwise.
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